Lake Superior Tourism Study Collaboration Around the Lake: Situational Assessment and Recommendations

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Lake Superior Tourism Study Collaboration Around the Lake: Situational Assessment and Recommendations Lake Superior Tourism Study Collaboration Around the Lake: Situational Assessment and Recommendations August 2018 | Confidential Contents Executive Summary 3 Background, Purpose, and Scope of Study 5 Interview Results and Supporting Research 11 > Ontario 13 > Minnesota 26 > Wisconsin 30 > Michigan 33 > Visitor Spending and Lodging Statistics 38 Collaboration: Insights & Considerations 41 Appendix 50 © Deloitte LLP and affiliated entities. Lake Superior Tourism Study | FINAL DRAFT 2 Executive Summary (1 of 2) • With the purpose of informing its approach to collaboration for current and future tourism initiatives, TNO engaged Deloitte to conduct a situational assessment of stakeholders in the Lake Superior Watershed Region (LSWR) • The LSWR was defined as the 16 counties in 3 US states and 2 districts in Ontario along the shore, with a total population of approx. 750,000 people • The study centered mainly around a primary research effort consisting of 25 external interviews of Canadian and US stakeholders, complemented by secondary, desktop research o The majority of interviewees were representatives of local, regional, and state / district-level tourism bureaus / DMOs, but also included other organizations with an interest in the region o Stakeholders were asked to describe their key tourism activities and priorities, their experience with past collaboration efforts, and interest in collaborating around specific products / topics • The interviews and research confirmed that tourism is significantly more developed along the US south shore, with a number of active communities in all three states, while in Ontario the activity is mainly concentrated in the two big population centers of Sault Ste. Marie and Thunder Bay o Of the three US states, Minnesota stands out for having the busiest tourism corridor along the lake, from Duluth all the way to the Canadian border, thanks in large part to its close proximity to the Minneapolis-St Paul metro area o In contrast, Wisconsin has the least activity on the US side, with smaller communities along the lake (with the exception of its share of the Duluth metro area), despite having one of the top tourism assets along the south shore: the Apostle Islands © Deloitte LLP and affiliated entities. Lake Superior Tourism Study | FINAL DRAFT 3 Executive Summary (2 of 2) • Based on our research and analysis, total visitor spend in the LSWR is ~CAD$2.6 billion (~US$1.9 billion)1, a small fraction (<5%) of the total visitor spend in the three US states and Ontario • The interviews revealed that regular collaboration, in particular cross-border collaboration, among local and regional stakeholders is relatively limited and informal o Whatever collaboration or communication exists relies mainly on personal connections, as opposed to formal mechanisms o Few examples of broad collaboration were provided by interviewees, with Ride Lake Superior standing out as the most referenced initiative o Despite generally positive attitudes to the idea of collaboration, some stakeholders were critical of past attempts or experiences, citing conflicts or misaligned interests • An analysis of the interview results also revealed that local funding and priorities drive stakeholder behavior, that most stakeholders have very limited budgets and bandwidth to engage with others, and that personal relationships, focused initiatives, and bi-national leadership are all key to fostering productive collaboration • In terms of opportunities for collaboration going forward, the Circle Tour was mentioned but did not generate a lot of excitement, while the hot topics of cruising and cultural tourism were suggested by some as promising areas for exploring cross-border collaboration, albeit with challenges • As it explores opportunities for future collaboration, we suggest that TNO be mindful of initiatives already underway, to create spaces for networking and sharing of information, to structure collaboration initiatives wisely, and ensure that they have clear, unbiased, bi-national leadership o Developing innovative products, programs and initiatives, and being bold in promoting and leading them, will significantly influence TNO’s visibility, reputation, and ability to drive change 1 Using an average 2016 currency exchange rate of 1.326 CAD to 1 USD [https://www.ofx.com] © Deloitte LLP and affiliated entities. Lake Superior Tourism Study | FINAL DRAFT 4 Background, Purpose and Scope of Study © Deloitte LLP and affiliated entities. Lake Superior Tourism Study | FINAL DRAFT 5 Background, Purpose and Scope of Study Background and Purpose of Study • As the Regional Tourism Organization (RTO) in charge of Northern Ontario, TNO is always exploring ways to boost tourism-based development and growth in the region • Given the important role that collaboration among stakeholders has played in TNO’s efforts in Canada, it is interested in further exploring similar opportunities with US stakeholders across the lake • The purpose of this study, therefore, has been to conduct a situational assessment of the stakeholders around the lake to better understand priorities and perspectives on cross-border collaboration Scope • The main component of this study was a primary research effort consisting of 25 external interviews of Canadian and US stakeholders identified by TNO o During these interviews, Deloitte gathered information on the stakeholders’ key activities and priorities, their past experiences and views on tourism collaboration in general and cross-border in particular, and any suggestions for future collaboration • The results of the interviews were complemented by secondary desktop research of the stakeholders’ websites, key publications, and high-level tourism statistics, where available • Based on the combination of both the primary and secondary research results, the report also outlines a series of key insights, learnings, and recommendations on the topic of collaboration © Deloitte LLP and affiliated entities. Lake Superior Tourism Study | FINAL DRAFT 6 Scope > Interviews > US Stakeholders The following is the list of US stakeholders that were interviewed for the study (identified by TNO) US Stakeholder List Name Organization State Interview Date David Lorenz Pure Michigan Michigan 27-Apr Paul and Cindy Hayden Lake Superior Magazine Minnesota 1-May Linda Hoath Sault Area Convention and Visitor Bureau Michigan 2-May Linda Kratt Visit Cook County Minnesota 2-May Tim Campbell Explore Minnesota Minnesota 4-May Susan Estler Travel Marquette Michigan 7-May Anna Tanski Visit Duluth Minnesota 10-May Mary Motiff Bayfield County Tourism Wisconsin 10-May Tom Nemacheck Upper Peninsula Travel and Recreation Association Michigan 11-May © Deloitte LLP and affiliated entities. Lake Superior Tourism Study | FINAL DRAFT 7 Scope > Interviews > Canada Stakeholders The following is the list of Canadian stakeholders that were interviewed for the study (identified by TNO) Canada Stakeholders Interview List Name Organization State Interview Date Paul Pepe Tourism Thunder Bay Ontario 25-Apr Dan Belvilaqua Superior Country Ontario 26-Apr Heather Bot Algoma Country Ontario 27-Apr Marlaine Kohler Waterfront Regeneration Trust Ontario 27-Apr Steve Burnett Great Lakes Cruising Coalition Ontario 27-Apr Kirsten Spence Quercwood Consulting Ontario 30-Apr Joanie McGuffin Lake Superior Watershed Conservancy Ontario 1-May Debbie Jewell and Ontario Ministry of Tourism, Investment Development Office Ontario 2-May Noreen Cartwright Rhonda Koster Lake Head University, Acting Dean, Faculty of Social Sciences Ontario 7-May Brian Lachine Wawa Ontario 8-May Betty McGie Private Owner/Operator Ontario 9-May Ian McMillan Tourism Sault Ste. Marie Ontario 9-May Ray Nadeau Hotel Association - Thunder Bay Ontario 9-May Mark Fisher Council of the Great Lakes Region Ontario 10-May Steve Bruno Destination Ontario Ontario 17-May © Deloitte LLP and affiliated entities. Lake Superior Tourism Study | FINAL DRAFT 8 Scope > Complementary Desktop Research The following main sources of information were consulted as part of our secondary research effort to complement interviews Sources For US Research Sources For Canada Research County Websites Websites of the stakeholders interviewed • County Visitor Guides • Community Annual Reports • County Annual Reports • Community Economic Development Strategic Plans • County Economic Development Strategy Plans & Budgets • Community Regional Vision Reports • County Marketing Plans, Infographics, & Press Kits • Brochures for the Circle Tour, RVing, angling, cycling, nature and adventure • County Recreation Plans Databases • County Tourism Industry Analysis/Reports • Statistics Canada • County Cultural Plans Third Party Research Provider Databases • Tourism Research from the Ministry of Tourism, Culture, • US Census 2016 and Sport • State Visitor Reports • CBRE Third Party Research Provider Press or Other Articles • Veritas Economic Consulting • American Friends of Canadian Land Trust • Longwoods International • Tourism Industry Association of Canada • Tourism Economics' Regional Economic Impact Reports • TB News Watch • Wisconsin Taxpayers Alliance • City Population Academic Institution Research Reports • Michigan State University Press or Other Articles • Circle Michigan © Deloitte LLP and affiliated entities. Lake Superior Tourism Study | FINAL DRAFT 9 TNO Overview Created and funded by the Ontario Ministry of Tourism, TNO acts as a liaison and champion for the industry and all of its stakeholders in Northern Ontario TNO is the largest of the 13 Regional
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